Steel stocks jump as Gary Cohn's resignation signals Trump's tariffs are coming
- Shares of the two largest steel producers, US Steel and Steel Dynamics, rose following news of Gary Cohn's exit from the White House.
- Cohn's departure reignited fears of a global trade war after President Donald Trump announced proposed taxes on imported steel and aluminum.
- Global stocks dipped Wednesday as investors digested the news.
Shares of the largest US steel makers jumped Wednesday morning after President Donald Trump's top economic adviser, Gary Cohn, said he would step down from his role over disagreements with the proposed taxes on steel and aluminum imports.
Cohn's resignation supported the belief that Trump would go through with his proposals despite widespread condemnation from the international community and even some members of his own party.
Here's a look at the scoreboard:
- US Steel (X) +4.67%
- Steel Dynamics (STLD) +1.55%
- AK Steel (AKS) +1.93%
- Nucor (NUE) +2.38%
- Century Aluminum (CENX) +4.89%
- Alcoa (AA) +1.28%
The news is tailwind for domestic steel manufacturers because they stand to benefit from the import tax.
US Steel, one of the biggest beneficiaries from the news, announced on Monday it would restart the furnaces at its Granite City, Illinois location over "anticipated increased demand for steel in the United States."
US Steel's shares have climbed 6% since Trump made the announcement last Thursday.
Since making his comments last week, Trump has doubled down on his intent for tariffs, saying "trade wars are good" in a tweet on Friday, though he later said he doesn't think there will be a trade war.
